Skillsoft (US:SKIL)2025-06-09 22:00Financial Data and Key Metrics Changes - Total revenue for the first quarter was $124.2 million, down approximately $3.6 million or 2.8% year over year [18] - Adjusted EBITDA was $22.1 million or 17.8% of revenue, up from $18.9 million or 14.8% of revenue in the prior year [20] - GAAP net loss was $38 million compared to $27.6 million in the prior year, with GAAP net loss per share at $4.57 compared to $3.42 [21] - Free cash flow improved to $26.2 million compared to $10.4 million in the prior year, reflecting an increase of $15.8 million [22] Business Line Data and Key Metrics Changes - Revenue for Talent Development Solutions (TDS) was $99.1 million, up 1% year over year [17] - Global Knowledge revenue was $25.1 million, down approximately $4.7 million or 15.7% year over year, impacted by softer demand in the public sector [17][18] - TDS dollar retention rate for the first quarter was 99%, compared to 100% last quarter and 99% one year ago [18] Market Data and Key Metrics Changes - There was a decline in U.S. Public sector discretionary live learning spending, while large scale non-U.S. Public sector deals increased [9][10] - The company is investing in international growth, particularly in sectors like AI, cloud computing, and cybersecurity [10] Company Strategy and Development Direction - The company is focused on executing its transformation plan and driving success for customers and learners [5][8] - A renewed focus on go-to-market strategy is emphasized, with new leadership additions aimed at enhancing brand awareness and demand [6][8] - The company aims to return to top-line growth and deliver continued margin expansion while generating positive free cash flow [15][24] Management's Comments on Operating Environment and Future Outlook - Management noted macroeconomic uncertainty leading to lower discretionary spending and elongated decision-making processes [7][15] - Confidence in the business strategy was reinforced by positive feedback from customer events and a strong deal pipeline [14][36] - The company expects to see most growth in the back half of the fiscal year, contingent on market stabilization [8][24] Other Important Information - The company is closely monitoring macroeconomic conditions and potential impacts on business [24] - The leadership team has been expanded with the addition of a new Chief Marketing Officer to enhance marketing efforts [6] Q&A Session Summary Question: What are you seeing in the underlying KPI or deals that give you confidence in reiterating the full year target? - Management expressed confidence in TDS growth and noted a positive deal pipeline in GK, contingent on market stabilization [30] Question: Is there a component of GK being worse and TDS better in your underlying assumptions? - Management acknowledged that discretionary spending was impacted in Q1, particularly in live learning, but noted improvements in the last month of the quarter [32][33] Question: What is the next phase of the business transformation process? - Management indicated that the focus will shift towards increasing growth rates and enhancing go-to-market strategies [35][36] Question: Can you provide context on the government business and its performance? - Management noted softness in U.S. Federal discretionary spending but observed good activity in European public sectors [47][48] Question: What specific changes or improvements can we expect with the new CFO? - The new CFO emphasized the importance of integrating finance into all business decisions to support go-to-market strategies [52]